Being a casino host seems like it could be a tough job, especially trying to please high-maintenance customers. So how do casino hosts earn their salary? Is it a yearly salary, do they work on commission? Is their salary tied to quotas like how many dollars they bring in from the customer, how many times a year people visit?
We’ve answered this question a couple of times, but not in the last ten years or thereabouts. It’s one we get from time to time, so we thought we’d finally revisit it.
A few independent or freelance hosts, such as Steve Cyr, the main character in Deke Castleman's book Whale Hunt in the Desert, steer high rollers to one or more casinos with which they have a working arrangement. Since they're independent contractors, they're not paid a salary; rather, they earn a commission from the casino, usually based on the losses of the players they bring in.
For example, if a freelance host brings Mr. A to the Hats and Horns Casino and Mr. A loses $200,000, the host gets a percentage (let's say, 6%) of Mr. A's loss -- as soon as he pays up. So the host makes $12,000 for that trip. And any time Mr. A shows up at the Hats and Horns afterwards, his host collects on the losses.
Now, if Mr. A wins, the host makes nothing. So he's rooting for his player to tank in a big way.
Sometimes an independent host's remuneration is based on his player's overall action. This is known as the "theoretical." The formula here is the average bet multiplied by the time played multiplied by the house advantage. Say Mr. B plays baccarat at $10,000 a hand for one hour at (in round numbers) a 1% disadvantage. His theoretical loss is $5,000 ($10,000 X 50 hands X 1%). The host might make 12% of that, or $600.
Here, it doesn't matter if the player wins or loses in reality. That's why it's called the theoretical: The host's remuneration is based on the mathematical expectation of Mr. B's play. Now the host doesn't care if his player wins or loses. He just wants him to sit at the table for 48 hours straight. He's making $600 every hour that he plays baccarat for $10,000 a hand.
Most casino hosts, however, aren't freelancers. Instead, they’re salaried employees. Some casino companies don't pay their hosts any bonuses, commissions, percentages, or incentives at all. However, many do, usually quarterly or annually. Where bonuses are paid, what they’re based on can vary considerably. Usually, like salaries, each host is paid an individual merit bonus, dependent perhaps on the amount of play of his customers, or the number of room nights occupied by players who are "coded" to him, or the play of new customers that he brings in to the casino.
Other times, a host's bonus can be based on the losses of his players. A few casino companies work more on the team concept and host bonuses are based on the success of the whole player-representative department in reaching corporate goals.
A new wrinkle on the casino-host scene is described in the latest edition of Whale Hunt. Here, Steve Cyr discusses a new revenue stream for indie hosts: a commission on retail. It’s similar to how the new breed of club hosts get paid.
At some casinos, independent contractors earn a percentage of what their players spend in the hotel for rooms and meals. “For the retail part of my deal [at these casinos], I’m just like a travel agent,” Cyr says.
One thing’s for sure. The top casino host positions, whether contractors or employees, are among the best-paid in the casino.
